From: Lou Dietrich []
Sent: Friday, September 10, 2004 8:35 AM
Subject: FW: Legacy Issues

Ms Russo!

I take great exception to being called a "legacy issue" by your CFO.

"Lucent Technologies Inc.'s chief financial officer gave rough targets
for the company for the next several years, saying the
telecommunications-equipment maker's financial performance has
stabilized. The finance chief, Frank D'Amelio, also said the company
must reduce its retiree-benefit costs. "Spending levels have to come
down," he said. "Most of our competitors don't have these legacy

Does he not remember when we "legacy issues" made billions for
LU?...only to be squandered by over paid LU executives!....

We retirees deserve an apology from you and your CFO...and demand more
respect for those families who allow you drawn your excessive salaries.

L. (Lou). E. Dietrich

From: Russo, Patricia (Patricia) []
Sent: Tuesday, September 14, 2004 5:54 PM
To: 'Lou Dietrich'
Subject: RE: Legacy Issues

Dear Mr. Dietrich,

I received your email.  No harm or disrespect was intended as Frank
D'Amelio discussed the issues confronting Lucent for post retiree health
care.  As you know, it is an issue for the company given the rising
costs and the fact that the total retiree health care cost represents
about 10% of revenue; this is not affordable for a company our size.

The use of the word "legacy" is not aimed at describing our retirees, it
characterizes this as an issue resulting from previous policies as we no
longer provide retiree health coverage for any employees with less than
15 years service, so any new hires have no retiree health coverage.

I apologize if you are offended.  It was not intended.

Pat Russo

From: Lou Dietrich
Sent: Wednesday, September 15, 2004 6:47 AM
Subject: RE: Legacy Issues

Ms. Russo,

Thank you for the apology. It is warmly received.

While I realize you are struggling to keep our LU afloat, you also must
realize that we must keep our family life afloat. There are retirees who
rely entirely on their retirement fund and can not afford any increase
in healthcare costs or decrease in benefits. They, we, are fighting to
make ends meet.

Most retirees wish LU well in it endeavors...but not at the expense of
our retirement accounts. Your retirement plan people can give you the
figures on the average retiree's monthly check. The retiree life is one
of trying to make very basic ends meet, based on what they were told
would be their benefits.

Every company should value the contributions of their former
employees...those "previous policies" as you mentioned were promises
made by the Company in exchange work provided by the employee. It was
part of the total compensation package, which WE, AT&T, and LU took
pride in exhibiting.

Now those promises are being broken...and those fiduciary accounts have
been depleted by repeated "raids" (albeit legal) to cover current
operating margins. Executive Compensation has been based on operating
results and the retiree accounts have been retentively used to bolster
these results. Maybe it is time that Executive Compensation contributes
back into those accounts? 

Those previous policies, as you described them, as onerous as they may
now seem to you, were earned!...Earned by waking up everyday and putting
in solid labor hours...protecting Company assets as they were our
own...making sure every last dollar was billed to our customer...and
them making sure we booked those dollars. Those "previous policies" were
compensation for long hours of devoted work.

Please stop looking at your retiree benefits as a simple source of
current funds....these are dollars earned by the retirees...for the
retirees...not as a subsidy for current results.

Again, thanks for the apology.

L. (Lou). E. Dietrich